Fifth Circuit decision creating issues in other CFPB cases

That's the takeaway from Evan Weinberger's Bloomberg Law report, CFPB Funding Decision Is Grist for Agency Enforcement Fights. Excerpt:

At least two companies targeted in CFPB enforcement actions have already pointed to the ruling to ask other courts to dismiss the actions on constitutional grounds. Others will wield the US Court of Appeals for the Fifth Circuit decision in settlement negotiations and battles over civil investigative demands until ruling appeals are exhausted, attorneys who represent companies say.

“Very few companies will settle with the CFPB, except for chump change,” said Alan Kaplinsky, a senior counsel at Ballard Spahr LLP, who represents companies battling the agency.

The CFPB has already signaled that the Fifth Circuit ruling—which isn’t the first such legal threat the agency has faced—won’t slow its efforts. Still, having to grapple with the ruling in enforcement actions will cause delays and stretch the bureau’s resources.


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